The article addresses the launching of Apple Watch 2 by Apple Inc. and the rumors regarding the features that may be added to make it different from the first Apple Watch launched in 2014. The fact that the release of the first Apple Watch was widely anticipated across the globe with consumers willing to get themselves the gadget which was retailing at £299 makes the second version much interesting to watch. Additional features to the Apple Watch 2 would, therefore, enhance Apple’s position as the number one selling smartphone maker in the world, which is key to sustaining its competitive advantage in the long run.
The launch of Apple Watch 2 and anticipation by consumers prove the extent to which Apple has succeeded in convincing consumers to readily embrace its new products. The new Apple Watch 2 is anticipated to cost £1000 to £8000 with the company assured of high sales immediately the product is launched. The events surrounding the launch of the Apple Watch 2 make it imperative to look into the strategic management principles used by Apple and other strategies, both corporate and business level strategies that could enhance the competitive advantage of the firm. The watch is expected to have additional features such as front-facing cameras to enable users to take selfies and Facetime video calls that raise the monetary value of the watch. Additional features will also include a variety of colors for the straps, longer battery life, and chips that have a 32-bit powerhouse. Such design capabilities prove the extent to which the firm is willing to go in differentiating its products and providing customers with the uniqueness that meets their changing needs and expectations.
Apple’s business level strategy is, therefore, aligned with differentiation options since Apple Watch 2 is unique compared to what competitors such as Pebble Time Steel have to offer. The premium price tag of the Apple Watch 2 brand implies that the company is keen on using stability strategies regarding profit maximization to make itself competitively stronger in the industry. The corporate level strategy for Apple is to focus on the high-end markets that make it possible to enhance financial performance. Additionally, the fact that Apple outsources its manufacturing activities to nations such as China and Brazil means that the company is also focused on relying on low-cost strategies to lower its production costs hence enable it to maximize its profits.
Demographically, Apple through its products focuses on markets that have higher buying power. The fact that the new Apple Watch 2 will go for a range of £1000 to £8000 means that major consumers will be from developed markets in Europe and the USA. Apple also targets consumers with high lifestyles since the Apple Watch 2 is an important component of the iPhone brand that fits the unique needs of consumers that attach high value to unique and highly differentiated products.
Politically, Apple focuses on territories that have stable governance since a reflection on its corporate strategy implies that the company would not want to invest in markets where it is uncertain of the effects of politics on the business operations. The need to avoid politically unstable regions is, therefore, among the factors that can be attributed to the fact that Apple mainly focuses on developed and mature markets in Europe and USA, and more recently China. To achieve its corporate level strategy of sustaining financial performance, Apple utilizes its functional level strategies through improving its marketing, human resource, research and development and finance functions. Investing in research and development is necessary since it enables Apple to focus on opportunities in efforts to leverage its strengths. Research and development are among the factors that contribute to better understanding of ways through which Apple’s products could be re-developed to improve on the features of previous products such as the first Apple Watch. Additional features are necessary since they give the company a reason to charge new and higher prices since consumers are convinced of higher utility when they buy the new products.
Technologically, it is evident that Apple is making huge steps in improving uniqueness of its products by adding features and improving the usability of the items. However, it is not possible for an organization with a wide reputation as with the case of Apple to establish itself as the most dominant in the industry without putting in place effective strategic management principles. Strategic principles including having a committed workforce that embraces dynamism and is keen to transform the vision of the company into action. The fact that Apple manages to create enthusiasm among employees in all its functional areas has contributed to innovativeness and improvement of competence of the workforce. Everyone at the company understands the goals of the company and is keen on making sure the firm maintains its corporate leadership in the fast-changing technology industry.
The HR function at Apple plays an important role in ensuring that Apple acquires and retains employees with desired talents while improving ways through which the company responds to the needs and expectations of employees through both financial and non-financial incentives. The success of Apple can, therefore, be linked to the fact that it has managed to maintain a motivated workforce over the years it has operated in the industry.
Economically, the market focus strategy for Apple can be adverse in regions where there are financial crises like Greece and a few other European countries. This implies that the firm’s sales can decline in times of economic crisis since the purchasing power of consumers will be reduced significantly. Such effects can reduce profits for the firm hence prompting Apple to lower prices of products to maintain its stability. It is not easy to manufacture products like Apple Watch 2 that create much hype even before they are launched. Apple has managed to become the number one company in selling smartphones due to its ability to enhance its value chain activity, both primary and secondary. Primary activities such as sourcing of raw materials have been achieved by the fact that Apple outsources its manufacturing to reliable suppliers. That marketing department has also played a key role in conducting marketing research on what customers prefer, hence creating the ability to increase sales by creating brand and customer loyalty. Secondary value chain activities including stability of firm’s infrastructure, effective HR management and technological developments have also contributed to successful manufacturing of unique products such as the iPhone and Apple Watch.
Lastly, to sustain itself as among the most dominant firms in the industry, Apple needs to focus on its profit maximization strategies by motivating employees to come up with creative ideas on how to add unique features to products such as the Apple Watch. Motivated employees are the reason for Apple’s dynamism and sustainable competitive advantage in the industry. Apple needs to consistently improve its functional-level strategies by concentrating on key areas such as marketing, human resource, research, and development as well as finance if it is to sustain its ability to transform its vision into action.
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Works Cited
Painter, Lewis. "New Apple Watch 2 Release Date: UK Prices and Specs Rumours." Macworld 27 June 2016. Web. <www.macworld.co.uk/news/apple/apple-watch-2-straps-cellular-rumours-release-date-march-event-touch-3606039/>.
